California Budget Breakdown

California governor Gavin Newsom (D-CA) spoke to the press today outlining the state budget for 2022. Here are the highlights:

• The projected budget surplus is USD$45.7 billion. This may trigger the Gann limit and compel a return of excess funds to the taxpayer. Newsom has suggested that there may be “substantial contributions back to the taxpayers”.
• All low-income, undocumented residents will now be eligible for health insurance. This is an expansion of the previous Medi-Cal system which excluded those between 26 and 50 years of age. This has a projected annual cost of USD$2.7 billion.
• Newsom has pledged USD$3.9 billion on green vehicle infrastructure. This will help offset complications arising from his executive order to stop the sale of new petrol cars by 2035.
• There will be no increases in fuel tax.
• On the environment: UD$200 million will be allotted to cap old oil wells and USD$50 million to assist and retrain energy workers. Newsom also wants USD$750 million for drought aid and USD$2 billion for California’s firefighting force and forest management.
• On education, Newsom is looking for USD$119 billion for schools. The k-12 spend per pupil is projected at USD$20,855.
• In social care, Newsom has pledged USD$2 billion to tackle homelessness, which will be divided between support programs and housing.